The originator of the quote, Warner exec Jamie Kellner, said that there was some allowance for going to the bathroom... but that routinely skipping ads, as the brand-new TiVo DVR could do, constituted theft of programming.

Honestly, he wasn't wrong: if content is provided on an ad-supported basis, there's a give and take. The content was provided with the understanding that the advertisers who paid the network in lieu of the viewer would have the viewer's attention during ad breaks. If the viewer should screen out the advertisements, they are getting the benefits of programming while depriving the network of the benefits it hoped to realize by providing the content. This is morally equivalent to stealing. Everybody seems to understand this except for tech nerds, who for literally half a century have been creatively interpreting IP law and its philosophical underpinning in their favor.

I expect some browser fingerprinting and remote attestation tech to be deployed by Google in order to catch content thieves, and some scathing DMCA lawsuits to result in the wake of the inevitable attempts to circumvent said tech.